A local child care operator is in serious financial trouble blamed on administrative fiscal lapses and an inexperienced board of directors.
"The operator in question is relatively new and relocated to a school setting a little over a year ago," says Carla Fairbrother, child care manager at the District of Sault Ste. Marie Social Services Administration Board (DSSMSSAB).
"They have a service contract with the DSSMSSAB and are currently receiving money from us," Fairbrother said.
The DSSMSSAB board was briefed on the problem at a meeting tonight.
The operator was not named when the issue arose during the public portion of the meeting, but board member Marchy Bruni wanted to know the name and asked that the matter be dealt with behind closed doors.
In a report to the board, Fairbrother said that the operator's board of directors became aware of the problem last November and DSSMSSAB staff learned of it in December.
The program operator has reorganized its management team and is overseeing day-to-day management and finances, Fairbrother said.
"They have initiated an audit for the past 15 months of operation which is almost complete."
"They have been very responsive to any of our requests for information and understand our concerns with respect to viability of the organization."
Fairbrother said that DSSMSSAB staff are working with the operator and its auditors to assess liabilities and determine whether the child care program is sustainable.
Further information is expected to be presented at DSSMSSAB's next meeting in April.